Property market out of flavour...but 4.25 to 1.25 that is an over reaction surely!

Lancaster Gate - dubbed the Lancasters is one of their projects in London. Are property prices falling in London...

From The Sunday Times
February 17, 2008
Super-rich snap up apartments in world's most expensive residential scheme

RECESSION, what recession? The super-rich are snapping up apartments at the world's most expensive residential scheme at Londons One Hyde Park as if they were going out of fashion.

According to data released exclusively to The Sunday Times, half of the 80 apartments at the luxury scheme designed by Richard Rogers have already been contracted to be sold even though the project will not be completed until 2010. Knight Frank, one of the estate agents handling the Knightsbridge development, said sales already totalled more than 500m and the average apartment price had reached 20m.

Wealthy oil barons, Russian oligarchs and hedge-fund managers are shelling out at prices that break down to almost 6,000 per square foot for the chance to own one of the apartments. That figure is up from 4,000 per square foot in late 2006.

The sales reflect Londons status as a global city, with 39% of the buyers hailing from Russia, 25% from the Middle East, 14% from Britain and 11% from continental Europe. The highest price paid for an apartment at the scheme is rumoured to be more than 100m. The interiors are the work of Candy & Candy, the interior design company run by Nick and Christian Candy, two brothers in their early thirties who have become multi-millionaires by creating fantasy homes for people with limitless budgets.

The site will have an underground passage to the nearby Mandarin Oriental hotel, where staff will be on hand to cater to residents needs.

CPC, the Guernsey-based investment company owned by Christian Candy, has an equity stake of more than a third in One Hyde Park. The scheme is also backed by Sheikh Hamad bin Jasim Jaber al-Thani, foreign minister of the Gulf state of Qatar.

Liam Bailey, head of residential research at Knight Frank, said sales of so-called super-prime homes in London worth 10m or above had more than doubled in the three months to the end of January compared with the same period last year.

He said: It is quite extraordinary the way the super-prime market has continued to surge ahead. Sales of homes worth 1m-5m have slowed, but once you get above 5m, and certainly above 10m, they are still powering ahead.

Masses of debt. Some development sites where the prospect of finding occupiers not good.

true, however more than priced in from 423p down to sub 15p!

I do agree that this is way oversold, as interest in this company grows again, this will rise very sharply, on a technical note look for buys above 15p as signs of another attempt to break through this 15p resistance level. Personally expect this to rise and people to start falling over themselves to get in only for the SP to really accelerate further. You know how it is, while it is steady trading between 10-15p no fresh interest, when it breaks that resistance people will buy in and pay a considerable premium to the current sp IMHO.

From The TimesNovember 27, 2008

Minerva finds new investor with Kirsh
Smaller companiesPeter Stiff
A little-known South African investor emerged yesterday as the largest shareholder in Minerva, the commercial property group.

Nathan Kirsh, through his Kifin investment vehicle, is understood to have been behind a huge share purchase in the company that went through late on Tuesday.

Aberdeen Asset Management is believed to have sold its entire stake in Minerva, after being approached by Mr Kirsh. Kifin now holds about 20.4 per cent of Minervas shares.

It is understood that the South African, whose other business interests include a holding and directorship with Magal Security, an Israeli security group, is not preparing a bid for the group in the near future..

Minervas share price has been hammered over the past year as the value of its property has tumbled. Limitless, a Middle Eastern investment fund, had shown interest but concern over the size of Minervas debts killed off any hopes of a deal. The shares rose 2p to 14p.

+ve opened up

+ve buyers above 15p

bodes well

everyone on the side of caution understandably

however that does mean many projects/potential not priced in currently

interesting...

'Three UK sites in running for Bloomberg HQ

By Mark Leftly
Sunday, 30 November 2008

Bloomberg, the media empire founded by the current Mayor of New York, has shortlisted three sites for its new London headquarters.

The New York head office is considering taking 300,000 to 400,000 square feet in either Watermark Place, the UBS and Oxford Properties development next to the Thames, which is due to open next year; Minerva's The Walbrook, under construction in the City; and Ropemaker Place, which is being developed by FTSE 100 giant British Land. '

in a trading range currently 10 - 15p, awaiting a break above 15 for some action

worth taking a small stake and building it up steadily IMHO

I will take a position around 7/8p got to be a bargain.

7 or 8p is worth a punt

well CEO has just announced 175k buy at 14.25p

more good news...

'PLANNING PERMISSION SECURED FOR RAM BREWERY'

Maybe, but a) section 106 agreement still to be finalised and this will impose actions/costs on the developer; b) they need to find some occupiers - thin on the ground at the moment; and c) site worth a lot less today than it was when the planning process started.

So I shouldn't get too carried away.

Surely all the above concerns (and a whole lot more) are already factored into the SP, down from over 420p, the market has hammered these as though they are bust!

todays news is a step in the right direction, is how I see it, by the time they complete everything hopefully we can be looking forward to renewed interest in property and this company

anybody think there will be a bid for these soon?

cm2008 Maybe a possible bid target,but refused 160p bid from limitless ,but they seem to be very confident with the sites and value ,100+ million in cash NAV at circa 230p, planning granted is an obvious bonus.
The advantage they have is they have a number of apartments pre-sold and when there projects are completed (1-2 years) the economy may have improved along with bank lending
I am old enough to have seen this thing before, been in and out of my property portfolio 3 times in 30 years
Overdone,I am holding 300k @ 15p
Also look at QED building around Wembley bought & sold 2 weeks ago big profit and prospects,I am now back in 50k at 32p

in the current economic climate it is difficult, understandably not to be able to look long term, surely there must be some very astute investors who will swoop this up amidst this turmoil

I would not be surprised to see a bidder, they have prime sites in and around London (Lancaster Gate) just one
I see a stake of 15% changed hands last week and London will, if history repeats itself will be the first place to see a recovery.
I think the important thing is they are building now and with the current economic climate it makes everything from materials to labour cheaper than in BOOM periods

BUY

Property Week

Minerva drinks to iconic Ram Brewery redevelopment

11:57 | 04.12.08

By Jennifer Rigby

Minerva has got the green light for a 1m sq ft redevelopment of the former Youngs Ram Brewery in Wandsworth, south west London.

The developer won consent from Wandsworth Council on Wednesday for the scheme, after agreeing to pledge 41m to fix transport problems.

The scheme will restore listed buildings on the site including the Brewers House and provide space for new facilities including a micro-brewery.

The full development comprises four Town Centre sites and set aside more than 200,000 sq ft of space for bars, restaurants and shops.

It will include two towers on the main brewery site, one of 32 storeys, one of 42 storeys. Nine other blocks will range in height from three to 15 storeys.

Planning applications chairman Leslie McDonnell said: The new homes, shops and restaurants come with the biggest transport 'dowry' we have ever secured.

'It is the only prospect we have of getting the money to tackle the area's chronic traffic problems.

We have not compromised on quality to get these benefits.

'The whole development has been designed to make the most of the site's unique industrial heritage. It aims to create an attractive environment that will change for ever people's perceptions of the town centre.

The Wandsworth Town Centre Partnership described the brewery site as pivotal.

oversold and undervalued